KRS 197.540: Irrevocable letter of credit as substitute for performance bond --

Protection of state's interest in continual level of prison beds.

(1) When KRS 197.510 or any other statute relating to contracting for the private

operation of prisons requires a performance bond, an irrevocable letter of credit or a

performance bond in a form satisfactory to the Commonwealth may be substituted.

(2) The contract shall also protect the state's interest in providing a continual level of

prison beds available without a su dden drop in the number of prison beds available

or the need to release inmates or provide for their transfer to other facilities.